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The cost performance of infrastructure projects is a serious problem worldwide. This paper aims to analyse the generating process of cost overruns along the various phases of the project life-cycle. To this purpose, we employ a large dataset of Italian transport infrastructure projects for roads, started and completed during the period 2000–2013. Applying the same methodology used by the construction management research, we breakdown the various phases of the project life-cycle as well as the related cost items (estimated or actual) to analyse empirically the role of each phase in the overall evolution of cost overruns. Specifically, we pay particular attention to the costs for the physical execution of the work, distinguishing them from all other costs. The results show that Italian public infrastructure works suffer from significant cost overruns in the execution phase. However, the Italian contracting authorities seem to systematically overestimate the size of the final costs for the physical realization of the work. This risk aversion attitude is more relevant when considering financial coverage (rather than budget) and it is likely to leave room for opportunistic behaviours in the execution phase. In terms of policy implications, our results suggest the adoption of more stringent (and objective) criteria to assess the project budget and to provide its financial coverage. • This study analyses the generating process of cost overruns along the various phases of the project life-cycle. • We employ a large dataset of Italian infrastructure projects for roads, started and completed in 2000–2013. • We breakdown the various phases of the project life-cycle and identify the related cost items (estimated or actual). • The results show that Italian public works suffer from significant cost overruns in the execution phase. • At the same time, the contracting authorities overestimate the financial needs for the projects. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between the presence of organised crime into the local socio-economic fabric and educational outcomes in Southern Italy. For this purpose, we rely on different indices of organized crime, the main of which is the well-established Mafia Presence Index (IPM), a composite indicator capturing manifold dimensions (activities, violence, political, and economic infiltration) of the presence of Mafia -type organizations on the national soil. These indices proxy the (scale of) negative Mafia -type values that permeate a local society and that are likely to hinder educational achievements, distorting the incentives of both the youngsters (and/or their parents) to invest in human capital and the local firms to employ those who decide to make this investment. Furthermore, combining contemporary individual-level educational outcomes with historical data on Mafia infiltration, we control for endogeneity concerns through an IV strategy. We provide evidence that the presence of organised crime at local level significantly decreases the scores achieved by primary school students, undertaking the INVALSI test for literacy in Southern Italy. Our results are robust to the use of different measures of organised crime, to the inclusion of different sets of controls, different subsamples and to relaxing the exclusion restriction in the IV strategy. • We explore the link between organized crime (OC) and education outcomes (EO) in Italy • We claim that OC can hinder EOs by distorting incentives to invest in human capital • We rely on different indices of OC at the local level • We find that an increase in OC leads to a decrease in EOs • Results are robust to different controls, subsamples and to IV strategy [ABSTRACT FROM AUTHOR]

Despite financial and decision-making responsibilities having been increasingly devolved to lower levels of government worldwide, the potential impact of these reforms remains largely controversial. This paper investigates the hypothesis that a shift towards a higher degree of fiscal autonomy of sub-national governments could improve health outcomes, as measured by infant mortality rates. Italy is used as a case study since responsibilities for healthcare have been decentralized to regions, though the central government still retains a key role in ensuring all citizens uniform access to health services throughout the country. A linear fixed-effects regression model with robust standard errors is employed for a panel of 20 regions over the period 1996–2012 (340 observations in the full sample). Decentralization is proxied by two different indicators, capturing the degree of decision-making autonomy in the allocation of tax revenues and the extent to which regions rely on fiscal transfers from the central government. The results show that a higher proportion of tax revenues raised and/or controlled locally as well as a lower transfer dependency from the central government are consistently associated with lower infant mortality rates, ceteris paribus . The marginal benefit from fiscal decentralization, however, is not constant but depends on the level of regional wealth, favouring poorest regions. In terms of policy implications, this study outlines how the effectiveness of decentralization in improving health outcomes is contingent on the characteristics of the context in which the process takes place. [ABSTRACT FROM AUTHOR]

Testing for spatial dependent heterogeneity in hospital technical efficiency is crucial for separating spatial issues from the effects of regional institutional factors. We apply the Spatial Stochastic Frontier Analysis for studying the presence of spatial dependence by using novel data on Italian hospitals. This approach provides both a robust estimation of hospital technical efficiency and a careful assessment of spatial and regional issues. We find empirical support for the idea that regional and institutional factors are more important than neighbouring effects when looking at heterogeneity in hospital technical efficiency across Italy. The relevance of the regional organization of the Italian hospital system can justify our results. We also discuss the limitations of our analysis and provide sensitivity checks. • The presence of spatial dependence is tested on a large sample of Italian hospitals. • Institutional factors are key factors for understanding hospital technical efficiency. • Neighbouring effects are not relevant in hospital technical efficiency in Italy. • The empirical findings are explained by the regional organization of the Italian NHS. [ABSTRACT FROM AUTHOR]